| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On October 12, 2023, Audacy Services, LLC, successor in interest to Entercom Communications Corp. (“Audacy Services”), entered into a Second Amendment to Amended and Restated Employment Agreement with Andrew P. Sutor (the “Second Amendment”) in order to amend the Amended and Restated Employment Agreement, effective as of August 3, 2017, as amended by the First Amendment to Amended and Restated Employment Agreement, effective as of January 1, 2020 (the “Employment Agreement”). The Second Amendment extends Mr. Sutor’s employment agreement, which had been set to expire by its terms on December 31, 2023, through December 31, 2026, and provides that Mr. Sutor will serve as Executive Vice President, General Counsel and Chief Legal Officer of Audacy, Inc. (the “Company”) and its subsidiaries.
Under the Second Amendment, Mr. Sutor’s annual base compensation will remain unchanged. Mr. Sutor’s annual incentive bonus target relating to periods after January 1, 2024 will be eighty percent (80%) of Mr. Sutor’s annual base salary. The actual amount of such bonus will continue to be determined in the sole discretion of the Company. The Second Amendment acknowledges, however, that Mr. Sutor will not be eligible for a 2023 annual incentive bonus in light of the retention bonus paid to Mr. Sutor on June 19, 2023 (the “KERP Bonus”). In addition, commencing with annual equity grants made during calendar year 2024, Mr. Sutor’s target amount will be $500,000, with actual equity grants, if any, will continue to be determined by the Compensation Committee upon the recommendation of the Chief Executive Officer.
Pursuant to the Second Amendment, in addition to the severance payments and benefits to which Mr. Sutor would otherwise be entitled upon termination of his employment without “cause” or with “good reason” (as such terms are defined in the Employment Agreement and the Second Amendment, respectively), Audacy Services will also pay Mr. Sutor: (i) a payment equal to the pro-rata portion of the amount of annual bonus received for the year immediately preceding the year of termination (or target annual bonus if such termination occurs before any annual bonus has been paid) and (ii) premiums for continuation coverage under COBRA for up to 12 months following such termination. For these purposes, Mr. Sutor’s 2023 annual bonus will be deemed to be equal to the amount of the KERP Bonus.
The foregoing description of the Second Amendment is qualified in its entirety by reference to the full text of the Second Amendment, a copy of which is attached hereto as Exhibit 10.1 to this Current Report on Form 8-K, and incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
